Decision Making and Alternatives Analysis
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Questions and Answers

What must be done after developing a list of alternatives?

  • Finalize the purchase immediately.
  • Seek external opinions on the alternatives.
  • Completely ignore the alternatives and start anew.
  • Analyze the alternatives based on predefined criteria. (correct)

What does the rank of 10 represent in the decision-making process described?

  • The maximum ranking for the most important criterion. (correct)
  • The average weight assigned to all features.
  • The weight assigned to Memory.
  • The minimum acceptable feature level.

Why might the assigned weights in the analysis of alternatives vary?

  • They are standardized across all decision processes.
  • They are based on personal opinion and preferences. (correct)
  • Because they are determined by external market forces.
  • They are fixed numbers required by accounting standards.

What is the primary purpose of assigning weights to features in the alternatives analysis?

<p>To establish a clear ranking of options against desired features. (B)</p> Signup and view all the answers

What decision-making approach focuses on minimizing potential regret?

<p>Minimax choice (D)</p> Signup and view all the answers

Which of the following biases involves a preference for immediate rewards over long-term benefits?

<p>Immediate gratification bias (A)</p> Signup and view all the answers

What technique is essential for understanding cultural differences in decision-making?

<p>Design thinking (B)</p> Signup and view all the answers

In the managerial decision-making model, which type of problem involves clear procedures and established solutions?

<p>Structured problem (B)</p> Signup and view all the answers

What is NOT a characteristic of an effective decision-making process?

<p>Allows for arbitrary decision criteria (C)</p> Signup and view all the answers

Which bias may lead decision-makers to only acknowledge information that confirms their preexisting beliefs?

<p>Confirmation bias (B)</p> Signup and view all the answers

Which condition indicates a high level of certainty in the decision-making process?

<p>Certainty (C)</p> Signup and view all the answers

What can hinder the process of making rational decisions according to biases?

<p>Perceiving randomness in data (B)</p> Signup and view all the answers

Which of the following is a feature of bounded rationality?

<p>Considering limited cognitive resources (D)</p> Signup and view all the answers

What is the primary purpose of a strategic plan in Aaliyah's restaurant?

<p>To guide the overall direction of the restaurant (A)</p> Signup and view all the answers

During the offseason, which type of plan would best help Aaliyah to innovate her restaurant offerings?

<p>Directional plan (B)</p> Signup and view all the answers

Which planning approach might Aaliyah employ to improve her restaurant's local community ties?

<p>Utilize standing plans for continuous improvement (B)</p> Signup and view all the answers

What is an advantage of conducting research and development during the offseason?

<p>Performance can be tested without high pressure (D)</p> Signup and view all the answers

What characterizes a single-use plan in Aaliyah's restaurant context?

<p>Developing a one-time strategy for seasonal sales (B)</p> Signup and view all the answers

What is likely a characteristic of Aaliyah's operational plans?

<p>They focus on specific activities and functioning areas (B)</p> Signup and view all the answers

In what way can Aaliyah's restaurant benefit from a short-term plan during lean months?

<p>By quickly addressing immediate challenges (D)</p> Signup and view all the answers

How does a directional plan differ from a specific plan for Aaliyah's restaurant?

<p>A directional plan is less structured and more flexible (D)</p> Signup and view all the answers

What type of planning could help Aaliyah create a unique customer experience in her restaurant?

<p>Single-use plans for special events or promotions (B)</p> Signup and view all the answers

Which organizational structure has high departmentalization and wide spans of control?

<p>Divisional structure (D)</p> Signup and view all the answers

What is a key characteristic of a boundaryless organization?

<p>It removes predefined structural boundaries. (A)</p> Signup and view all the answers

What distinguishes line authority from staff authority in organizational structures?

<p>Line authority allows managers to make decisions without consultation, while staff authority provides support to line managers. (B)</p> Signup and view all the answers

What does the team structure primarily consist of?

<p>Work teams that comprise the entire organization. (A)</p> Signup and view all the answers

Which of the following is NOT a purpose of organizing?

<p>Increase bureaucracy within departments. (A)</p> Signup and view all the answers

Which of the following is a characteristic of a mechanistic organizational structure?

<p>Centralized authority with specialized roles. (C)</p> Signup and view all the answers

In a functional structure, what is a primary aspect of its organization?

<p>Grouping related occupational specialties. (A)</p> Signup and view all the answers

How does the size of an organization influence its structure, according to the content?

<p>An organization typically becomes mechanistic around 2,000 employees. (A)</p> Signup and view all the answers

How does a matrix structure facilitate project management?

<p>It assigns specialists from different departments to projects. (D)</p> Signup and view all the answers

What is one of the main differences between mechanistic and organic organizational structures?

<p>Mechanistic structures have low adaptability to change. (B)</p> Signup and view all the answers

What does a simple structure typically lack?

<p>Departmentalization (A)</p> Signup and view all the answers

Which best describes the contemporary view of the span of control in organizational management?

<p>It varies based on the skills of the manager and employees along with situational characteristics. (A)</p> Signup and view all the answers

Which design focuses on organizing around ongoing projects and roles?

<p>Project structure (A)</p> Signup and view all the answers

What is a main feature of a virtual organization?

<p>A core of full-time staff supported by external resources. (D)</p> Signup and view all the answers

Which of these is a dimension that is typically established through organizing?

<p>Formal lines of authority (C)</p> Signup and view all the answers

Flashcards

Criteria Weighting

Assigning numerical values (weights) to different criteria to prioritize them in decision-making.

Speed (10)

A critical criterion for choosing a computer with a high value of 10.

Accuracy (8)

Importance given to the accuracy of a computer as a criterion.

Memory (5)

The importance assigned to computer memory as a criteria.

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Automation (4)

The level of importance assigned to automated tasks/functions in a computer.

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Alternatives

Different options that can be considered when making choices. In this case, laptop computer models.

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Analyze Alternatives

Evaluating available alternatives based on pre-defined criteria, and assigning numerical weights.

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Goals

Desired outcomes or targets.

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Plans

Documents outlining how to achieve goals.

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Strategic plans

Plans that apply to the entire organization.

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Operational plans

Plans covering a specific functional area.

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Long-term plans

Plans with a timeframe beyond three years.

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Short-term plans

Plans covering one year or less.

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Specific plans

Clearly defined plans with no room for interpretation.

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Directional plans

Flexible plans setting general guidelines.

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Single-use plan

A one-time plan for a unique situation.

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Standing plans

Ongoing plans for repeated activities.

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Maximax Choice

A decision-making strategy that maximizes the maximum possible payoff.

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Maximin Choice

A decision-making strategy that maximizes the minimum possible payoff.

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Minimax Choice

A decision-making strategy that minimizes the maximum regret.

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Decision-Making Bias

A systematic error in thinking that affects decision-making.

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Overconfidence Bias

Tendency to overestimate one's own abilities or the accuracy of one's judgments.

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Effective Decision-Making Process

A structured approach to decision-making that ensures quality and clarity.

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Design Thinking

Approaching a management problem using a designer's perspective.

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Decision-Making Conditions

The level of certainty or uncertainty in a decision's outcome.

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Managerial Decision-Making Model

A framework for understanding different aspects of decision-making.

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Organizing

Arranging and structuring work to achieve organizational goals.

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Organizational Structure

The formal arrangement of jobs within an organization, often visualized in an organizational chart.

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Organizational Design

The process of creating or changing the structure of an organization.

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Simple Structure

A structure with minimal departmentalization, wide spans of control, centralized authority, and low formalization.

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Functional Structure

Groups similar or related occupational specialties together.

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Divisional Structure

Made up of separate business units or divisions, each focusing on a specific product, customer, or geographical area.

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Team Structure

The entire organization is composed of work teams.

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Matrix Structure

Specialists from different functional departments work on one or more projects led by project managers.

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Project Structure

Employees continuously work on projects, often with temporary teams.

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Boundaryless Organization

A structure that breaks down traditional barriers between departments, levels, and even external boundaries.

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Line Authority

The power a manager has to direct the work of employees within their team. This power flows down from the top of the organization, following the chain of command.

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Staff Authority

This type of authority is given to individuals who support, advise, and help those with line authority. They don't have the power to directly command employees.

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Span of Control

The number of employees a manager can effectively supervise. It depends on factors like manager skills, employee abilities and the specific situation.

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Centralization

The concentration of decision-making power in the hands of upper-level managers.

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Formalization

The extent to which an organization relies on strict rules, procedures, and standardized processes to guide employee behavior.

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